| . | Why Not Trade Your Monthly Private Mortgage Note Payments For Immediate Cash ? Owning a note from sale of your property can initially make good sense. But what if receiving monthly payments no longer meets your needs ? Selling all or part of your note gives you flexibility when: - You're tired of the burden of collecting small monthly payments and keeping the records on taxable interest income
- You need a lump sum of money to pay off debt, buy a new home or truck, pay for college tuition or take a dream vacation
- Your concerned about the insurance and possible risk of future foreclosure, leaving you with a worthless note
- You want the freedom to invest your money elsewhere
- There's a business venture you want to initiate
Front Range Funding Solutions offers a range of smart, creative ways to sell all or part of your note We deliver fast, confidential, competitive pricing that is focused on one goal: getting you the most cash for your note. FRFS can design a Mortgage Purchase Plan tailored to your specific needs. Here are some of our most popular cash generating note purchase programs: Full Purchase Program For those that want to get the most dollars on the table now and just want to cash-out their note, we can buy the entire balance of the note ie all the remaining number of payments plus any balloon at the end. We'll evaluate your note, determine its net present value, and will pay you top dollar. You get all cash now ! Partial Purchase Programs If you don't need all of your cash now, partial payments can be arranged a number ways. The half for half program is very popular. We will pay you 1/2 of your mortgage balance for first 1/2 of your remaining payments. You get cash now AND income later ! After we receive our half of the payments, the balance and all future payments revert back to you. The total you receive through this program usually exceeds the total current balance of your note. Often people like to get a certain lump sum of cash up front yet still have a monthly income stream.The Cash / Income Partial can be structured such that you sell ,say, 50% of each of your monthly payments for cash up front and still have 50% of your monthly payments coming in as income. You get cash now AND still have some monthly income ! "You Tell Us " Program Don't leave money on the table or sell more of your payments than you need or want to. If you just need a specific amount of dollars to buy a car, pay the IRS or start a business etc, simply tell us how much cash you need right now and we will determine the smallest number of payments we need to purchase to get that amount into your hands. It's that easy. You get the exact amount of cash you need now ! Once paid off , the remaining later monthly payments revert back to you. How are we paid ? With Front Range Funding Solutions you get expert advice without paying any consulting fees. We don't earn a dime unless you receive the working capital you need. Even then, our fee is paid by the funding source, not you. Why work with Front Range Funding Solutions ? We focus on one goal : getting you the cash you need. Each situation is unique , and requires careful attention and listening. Our job is to find the right funding source that matches your needs and goals by turning your assets into cash, that banks just don't recognize. Get straight, no-nonsense answers today from Front Range Funding Solutions ! Frequently Asked Questions Why would I want to Sell my Future Payments ? There are as many reasons people sell their notes as there are ways to spend money. We always ask note sellers why they wish to sell their note. We are then able to give them unique options that meets their specific needs. The most frequent responses are: - To eliminate the risk and responsibility in holding the note. They want peace of mind and free from the worry of receiving late payments or having to foreclose on the buyer.
- To pay off debts, taxes or meet unexpected financial charges
- To take advantage of other investment opportunities
- To pay for college tuition or take a dream vacation
- To prepare for retirement or pay for expensive medical care
- To avoid accounting nightmares, IRS regulations, and paperwork hassles.
- To make specific purchases, a car, a boat etc.
Often people never wanted to carry back a note in the first place but had to in order to sell their property. Other situations, such as notes provided as equity settlements in divorce cases, inherited notes, result in the current note holder owning notes they never wanted. Often these people are happy to receive the current value of their note in cash and move on with their lives. What is a Note Appraisal ? A note appraisal reflects the current market value of your payments, similar to what a real estate appraisal provides for real property. Frquently, referred to as a "quote" it shows what your future payments are worth in cash dollars today. It is recommneded you have your note evaluated every few years. How is the Value of a Note Determined ? The amount of cash a note can be sold for depends on a number of components: - The current economic environment, market conditions and yields on other financial instruments.
- The terms of the note ( the monthly payment amount, the interest rate, amount outstanding and number of payments remaining)
- The amount of downpayment and equity the payor has in the property. Someone with a 20-40% stake in the home is far less likely to walk away and be a risk.
- The payor's/buyer's credit rating and payment history also helps assess the risk. The more 'seasoning' of the note i.e. the more payments made on time by the payor the better the risk
- The type, condition, and value of the property also impact the value of your note.
- The time value of money, which makes payments more valuable now than payments due in 20 to 30 years, also plays a role in the evaluation process.Due to inflation and other economic factors, money in your pocket today is worth more now than later.
All of these elements wiil be accounted for in determining the current value of your note. Why is there a Discount ? Whenever future payments are sold for cash today the current balance is always sold at a discount. The main reasons for this are: - The balance of the loan is paid back to the payee over time, and time erodes the value of money.
- The stated interest on seller financed notes is not high enough to induce investors to purchase these loans. Therefore, to increase the yield to investors, you must sell the cash flow at a rate of return greater than the note rate. You do that by selling the note at a discount from it's pricipal balance.
- You also need to know that the interest rate on a real estate note is NOT comparable to that earned on savings accounts and Certificates of Deposit. Real estate notes only earne SIMPLE interest whereas bank accounts and CDs earn COMPOUND interest.
How do I Maintain the Value of my Note ? Many of the factors that affect the value of your note were determined at the time the property was sold. However, keeping good records of the payments received and requiring the buyer to provide annual proff of current taxes and property insurance will help maintain the value of your most important asset. Can I Sell All or Part of my Note ? Front Range Funding Solutions can purchase all or part of your remaing payments. Selling part of the payments allows you to receive a lump sum of cash upfornt, then remaining payments when the note reverts back to you. We can even pay cash for a portion of each monthly payment. Many people select to sell just enough payments to meet their immediate cash needs today and keep some of the future payments as an investment nest egg. Always ask us for options that meet your needs. How will selling my Note affect the Payor ? The payor experiences no change in the way the payments are structured. The only change will be the address where payments are mailed. How do I get Started ? To start the process of selling your note to us, we request copies of the documents that were originated at the time of your sale : - Note and deed of trust, mortgage or contract
- Closing statement
- Pay history and current balance
- Previous title insurance policy
- Current hazard insurance policy
We will then give you a firm offer subject to the standard title, appraisal and buyer's credit review. How Long will it take before I have my Money ? Once under contract, you will receive your cash as soon as all the documentation can be obtained and verified. If the sale of your property and creation of the note was 'typical' , then you should have your cash in two to four weeks. Why should I use Front Range Funding Solutions ? We pride ourselves on : - Quick closings
- Excellent , responsive customer service
- Poviding customized options
- Strong financial backing and years of experience
- Flexibility on the structure of all note purchases
- Confidentiality with all transactions
- Credibility in the cash flow industry
At Front Range Funding Solutions we provide top rate service combined with the best prices available. |
